What are the responsibilities of the chairman of the HOA of an apartment building, his rights and responsibilities to the residents?

Homeowners' associations (abbreviated as HOAs) are unique forms of home management. Their activities are regulated by many legal acts. The Housing Code can be considered the main document defining the powers and entire work of the HOA. The general meeting with the board of the HOA are required to act within the framework of modern legislation, and today in this article we will consider in the most detailed manner everything that relates to the rights and obligations of the HOA and its board.

What does an HOA have the right to do?

In short, it is to carry out work related to the management of the house, that is, to carry out those activities that were previously the focus of the management company (in the form of a commercial organization or housing department).

Now let's take a closer look at the entire scope of activities included in this concept. What exactly do residents authorize their representatives to do in the election of the HOA board?

Article 137 of the Housing Code, dedicated to the regulation of such issues, reads:

1. The HOA has the right to enter into agreements with management and operating companies related to the maintenance of an apartment building and the provision of the full range of utilities.
2. It has the right to carry out certain work without recourse to the services of the management company (for example, hiring cleaners for the entrance or organizing independent garbage collection).
3. The HOA is engaged in calculating income and expenses with determining the necessary funds for carrying out routine repairs of the house, paying for the activities of contractors, forming a reserve fund, as well as those intended for major repairs.

Ways to leave a partnership

The HOA is a non-profit organization, so people join and leave it on their own initiative. Such actions take place only upon written application. Let's say the exit of even one apartment. But at the same time, residents must independently enter into agreements for the provision of services. As a rule, expenses are specified in the contract.

If the whole house wants to leave the coherent system, there are two ways to implement the plan: reorganization and liquidation. The right to exit is spelled out in Article 140 of the Housing Code, and the decision is made only at a general meeting.

Reorganization is possible in the case where several apartment buildings were involved in the homeowners' association; as a result of this procedure, the overall system may disintegrate and each building will have its own partnership.

The procedure for submitting documents is simple. A statement is written to the chairman, detailing the reason and initiative for leaving. All subsequent papers are prepared by the society. Exit is possible upon full repayment of current debts and payment of bills for the period prior to leaving.

It is important to remember that the application is submitted specifically to the homeowners' association.

What else?

Other rights of the HOA board include the following:

1. The partnership can conduct settlements under contracts with both individuals and legal entities for services rendered.
2. According to the procedure prescribed by law, the HOA can turn to the bank or to private individuals for credit funds.
3. His competence includes the sale, exchange and rental of property, including real estate. For example, the HOA has the right to collect fees from entrepreneurs who want to rent space in the building for office or trade.
4. The HOA calculates rent based on cost estimates.
5. It also collects this rent from the owners and tenants of the apartment building.
6. Also among his rights is the adoption of legal measures against persons who owe rent or rent, which must certainly be reflected in the minutes of meetings of the HOA board.

Expenses and income of the partnership. Estimate

Financial planning is one of the fundamental powers that rests on the shoulders of HOA members. Competent persons draw up a plan for financial expenses and income for the year, which allows the collective meeting to most correctly distribute funds for the current needs of homeowners. For this purpose, an estimate is drawn up, which is approved at a meeting of members of the partnership.

For the preparation of financial statements and estimates, the following grounds may be taken into account:

• the distribution of budget funds that was carried out in previous years, as well as the percentage of effectiveness of such a designated purpose;
• the inflation rate as of the date of expected approval of the estimate;
• financial resources that may not have been spent from the HOA budget for previous reporting periods;
• technical condition of an apartment building, in particular, collective property, the maintenance of which requires the allocation of funds, etc.

In other words, the issue of financial planning is one of the most important in the sphere of competence of the members of the HOA of any apartment building. Therefore, increased attention is paid to this topic, and full control is exercised over such activities of the meeting.

HOA Charter as the main document

The entire list of powers available to the HOA must be listed in the Charter of this organization. This list, for example, may include permission to carry out reconstruction, make changes to the local area in the form of parking for cars, etc. All rights of this organization listed in its Charter cannot conflict with the content of the Housing Code. They can only serve as a supplement and expansion of its basic provisions in specific situations.

The implementation of most rights by the board of the association is carried out in a working manner - rent is calculated, funds are distributed among bank accounts, and minutes of the board of the HOA are maintained. These actions relate to the current work. Compliance with the legality of all the mentioned operations is monitored by a special commission, called the audit commission, consisting of three to four people. Its composition does not include members of the board or other employees of the HOA.

If major changes are required (for example, to reorganize the structure of the HOA, change the ratio of funds distributed among various funds, refurbish the building), the board is required to organize a general meeting of all residents and put the issue to a vote. The HOA will receive the right to carry out the declared activities only if it receives a majority of positive votes.

Ways to control your home

There are several types of management and residents can choose any suitable one:

• Management Company.
• House management is carried out by the residents themselves.
• The residents' association exercises governance.

The choice always depends on many factors. This includes the solvency of the residents, the condition of the building, discipline, and the number of apartments.

About the features of the HOA

Very, very often, in the process of exercising their own rights, members of the HOA board have a lot of questions related to a number of controversial or problematic topics. Below we give examples of the most relevant of them.

One of the pressing issues is the board’s refusal to issue certificates to residents (about family composition or extended statements) on the basis of rent arrears. A logical question: does the board of a partnership have the right to refuse to issue any certificates to its members if there is a debt?

This practice is against the law. At the same time, such actions are widely used by HOA management in order to encourage residents to cover the debt or part of it. You should know that issuing the required certificates is considered not a right, but an obligation of the HOA. This also applies to cases where residents have any amount of debt for utility services.

Homeowners Association

For most homes, an HOA is naturally the best option. With this form of organization, employees, members of the initiative group and the leader can be re-elected at any time if they do not meet universal requirements. All the people involved have their own interest, since they live in the house, and accordingly try to improve living conditions. All work is controlled by the audit committee.

There is still a downside to such a system. If problems arise with illegal embezzlement of funds, re-election of board members is planned, or the chairman of the microdistrict does not cope with his duties, the paperwork can take quite a long time.

Access to the apartment - is it legal?

Another frequently encountered problematic question is about the authority of the chairman or board of the partnership to enter the apartment and inspect it. Situations like these are not uncommon in typical HOA board minutes. Our Constitution, as a fundamental law, enshrines the right of any citizen to the inviolability of his own home. In practice, this means that no one has the right to enter it without the permission of the apartment owners. The exception applies only to cases of a warrant or a threat of a terrorist attack or cataclysm (man-made or natural).

In other cases (including in emergency situations, for example, a pipe burst), access into the apartment is possible only with the permission of the resident. That is why any pretext for the right to access the premises (for checking meters or taking readings, measuring pressure, measuring temperature, etc.) is illegal.

Features of creation

To assemble an HOA, a general meeting of residents living in a high-rise building is organized, after which at least 50 percent of those present must vote positively. In case of a positive result, state registration of the legal entity follows.

The process of forming an HOA is divided into stages:

• selection of an initiative group that will conduct a conversation with residents, convey to them the essence of the system, post advertisements and ultimately call for a meeting;
• At the general council, the advantages and feasibility of creating a partnership should be conveyed, and then a vote should be taken. Typically, residents cast their votes openly and the results are announced immediately;
• Next, the homeowners association is registered and a personal bank account is opened.

About penalties and fines

Another, no less pressing question is about the powers of the HOA in the matter of calculating penalties. The partnership has the right to do this if such a function is spelled out in the Charter, which was adopted by the general meeting of residents. This measure is a forced one, intended to encourage debtors to pay for housing as quickly as possible.

The procedure by which fines are assessed is strictly regulated and prescribed in the Charter. In this case, one should focus on the provisions of the Tax Code of the Russian Federation related to the upper limits of penalties. For example, it is prohibited to charge a penalty of more than 1/30 of the refinancing rate for each day of late payment.

Responsibility

If a manager does not fully fulfill his obligations, he can be re-elected early. If he spent the general house finances on personal needs, they can be confiscated back by going to court. In case of significant violation, the accused person will be punished in accordance with the Criminal Code.

The Chairman is responsible for:

• maintaining competent and timely reporting;
• storage of documents;
• compliance with all norms specified in the charter;
• timely payment of utility bills by all residents.

Also, the manager must, within the time limits established by law, provide all the information of interest to the owners.

Are we required to sign an agreement with the HOA?

At times, residents may be outraged by the HOA’s offer to sign a maintenance agreement. Should such agreements be concluded and are HOAs obligated to do this? This practice is absolutely normal. The right of HOAs to conclude contracts, as well as the provision regulating the calculation of payments, is spelled out in Article 137 of the Housing Code of the Russian Federation.

If there are such signed agreements, the board has the right to conclude all kinds of transactions with utility providers on behalf of residents. If there is no agreement between the owner and the HOA, the residents will have to conclude the necessary agreements themselves at the representative office of the operating company.

Reporting Features

If the chairman of the homeowners association is an official, is he obliged to notify residents of all expenses incurred? Of course yes.

All funds spent are recorded and documented. This is necessary for reporting to both payers and tax authorities. Cash flows are especially important if there is a shortage of them. Then the correct presentation of information and transparent accounting will help convince of the need to increase collections without causing discontent among others.

Attention: violation!

The next problem that often occurs in apartment buildings is the posting of a list of debtors by the HOA board for public viewing. In this case, the residents’ indignation is completely justified and natural. According to the law (we are talking about personal data), it is prohibited to directly disclose such information. The board does not have the right to publish any data about residents without their written consent. This applies not only to addresses, full name. and passport data of residents, but also to the amount of existing debt.

Such lists can be compiled by the board for internal use and for taking measures to influence debtors. They should be stored indoors in a safe. In the case of such illegal publication, the debtor has the full right to apply to the court for compensation for moral damage. The maximum possible action for the HOA in this case is to post a notice about the accumulated general utility debt and warn about the upcoming appeal to the court.

Rights of the head of the board

To perform direct functions, the head is provided with a number of powers. He can represent microdistrict affairs in court without a power of attorney, as well as:

• record agreements with service companies;
• ensure control over the use of common areas by residents;
• be present in the owner’s apartment to eliminate the accident;
• distribute responsibilities among all board members;
• resign yourself.

Responsibilities of the HOA board

A list of them is given in articles of the Civil Code of the Russian Federation No. 148-149. What exactly does the HOA board owe to the apartment owners who chose it?

1. Comply with the law and the provisions of the Charter.
2. Monitor the fulfillment by residents of their own responsibilities regarding the maintenance of the facility.
3. Directly manage an apartment building or control the company that carries out this management.
4. Conclude contracts with utility supply contractors and subcontractors.
5. Engage in concluding agreements regarding the repair and maintenance of the building.
6. Maintain lists of residents who are members of the association.
7. Handle accounting, prepare estimates of income and expenses, and calculate rent.
8. Conduct paperwork and issue the necessary certificates to residents - members of the HOA.
9. Conduct general meetings of residents with the provision of reports to the HOA board on the work done.
10. Monitor the activities of the chairman of the partnership.

On what basis does the chairman of the HOA act?

The chairman begins to perform his duties immediately after signing the minutes of the meeting with the decision on his election. Voting can be carried out both by members of the board and at a general meeting of tenants-owners of the premises, depending on the provisions of the charter (clause 3 of article 147 of the Housing Code of the Russian Federation). We talked about how the election of the chairman of the HOA takes place and how this procedure is documented in this article.

In his work, the elected head of the partnership must be guided by:

• the provisions of section 6 of the Housing Code;
• charter of the organization;
• terms of the employment contract.

REFERENCE! The Housing Code determines the procedure for the interaction of the chairman with employees of the service organization and residents of houses entrusted to the HOA in the general case, and the clauses of the charter and the employment contract regulate the legal position of the chairman in a specific structure.

The conclusion of employment contracts with the elected management of the housing association remains at the discretion of the general meeting. As a rule, such agreements are concluded if there are no plans to attract third-party managers to the organization or enter into an agreement with the management company, leaving only control functions to the members of the board.

Now you know on what basis the head of the housing association acts.

On liability for failure to fulfill duties

Such a measure is not prescribed either in the Housing Code or in the Civil Code of the Russian Federation. But this does not mean that it is impossible to bring violators to justice. This issue, as a rule, is also regulated by the Charter of the partnership, which provides for certain types of punishment for specific offenses. More generally, it may contain a note about actions in accordance with existing legislation.

General civil liability applies to the following offences:

1. Negligence (for example, failure by a member of the HOA board to notify residents in a timely manner about an upcoming meeting).
2. Fraud - we can talk about false readings from metering devices or documents relating to the owners of premises.
3. Embezzlement or misappropriation of funds from owners - sometimes there are cases of malicious and unlawful distribution of funds from the general or reserve fund.
4. Deceiving the owners, including the entire meeting.
5. Official forgery.
6. Exceeding one’s own authority (this includes the above examples with posting lists of residents, etc.).

Any member of the partnership, including representatives of the HOA board and the chairman himself, is obliged to bear financial responsibility for his own actions. If damage to common property occurs due to the fault of the owner (for example, due to flooding), the latter is obliged to compensate it. To determine the amount of such damage, a special act is drawn up. If necessary, the assessment is carried out with the involvement of professionals. Moreover, a description of a number of specific situations related to offenses may be contained in the HOA charter itself.

What are the responsibilities?

The duties of the elected leader as a member of the board are defined in Art. 149 of the Housing Code, but can be supplemented by the provisions of the charter and the corresponding section of the employment contract. In general, the chairman of the HOA is obliged to:

1. comply with housing and civil laws;
2. control the timely payment of receipts by residents;
3. annually draw up an income and expenditure budget and present it to the meeting for approval;
4. generate a report on the financial condition of the partnership;
5. hire employees and organize their work;
6. conclude agreements with contractors to carry out current and major repair work;
7. organize the supply of utilities to residents (gas, water, electricity, etc.);
8. maintain documentation (lists of housing association members, accounting books, internal documents);
9. organize general meetings and conferences;
10. monitor the implementation of decisions made at meetings or meetings of the board.

Now you know what the responsibilities of the HOA chairman are.

The procedure and deadlines for drawing up reports are determined by the Charter. As part of the responsibility to provide the residents of the house with utilities, the chairman must enter into appropriate agreements with supply companies on terms that allow them to pay for the resources provided from funds received from the residents.

If debts arise to suppliers due to unfavorable terms of the contract with them that do not correspond to the financial situation of the HOA, responsibility lies with the chairman.

IMPORTANT! When forming staffing units, the elected manager draws up a plan and staffing table indicating the amount of salaries and working conditions, but these documents must be approved at a general meeting of residents-members of the HOA (according to Part 10, Clause 2, Article 145 of the Housing Code of the Russian Federation).

The terms of the employment agreement may supplement the list of responsibilities of the head of the housing association with the functions of an accountant or other employee.

Powers of the HOA board

What powers exactly are we talking about? The task of the management of the partnership is to engage in its direct activities. The entire list of powers necessary for this is regulated by the same Housing Code (its Article 147). The organization's charter must necessarily differentiate between the actions within the competence of the board itself and the general meeting of residents. That is, there must be clear instructions on what exactly the chairman and his deputies can decide at a meeting of the HOA board, without resorting to prior notification of the residents.

In most cases, we are talking about the following powers of the board:

1. Direct management of the activities of the partnership with the appointment of certain performers for specific work and the formation of personnel for the HOA.
2. Concluding public service agreements on behalf of homeowners.
3. Raising funds for the repair and maintenance of an apartment building.
4. Conducting office work with issuing all necessary papers and certificates.
5. Maintaining banking and accounting records with the transfer of funds under contracts for the payment of contractors.
6. Conducting general meetings of residents with filling out the appropriate minutes.
7. Protection of the interests of partnership members in courts.
8. In a situation where residents fail to pay utility debts, they should contact official authorities (from the city administration to the court and the prosecutor’s office).

Applying for a position

For his work, the person elected to the position of head of the board has the right to receive a certain remuneration. The amount of monthly deductions is formed from the membership fees of the owners in the HOA. It is determined at the general meeting through discussion and voting, followed by inclusion in the Charter.

There is no single salary rate for the chairman, since the scope of his activities and the scope of responsibility depends on the composition of the HOA and regional characteristics.

To hire the person responsible for managing the building, a general meeting is held, at which more than half of the apartment owners are ensured to be present. To be elected, it is necessary to have the votes of half of the citizens present at the meeting.

conclusions

It is clear from this that the entire list of powers of the HOA board is determined by its direct functions arising from the main purpose of the partnership - the maintenance of an apartment building.

In addition to the above, the powers of the HOA may include a number of additional ones, which must certainly be recorded in the Charter of the partnership. We can talk about the arrangement of the local area, independent maintenance of the building, collection of rent from persons who are tenants of commercial and residential premises of the house, as well as the disposal of common property, which includes basements, elevators, etc.

The Housing Code confirms that both the rights and obligations of the HOA are inextricably linked with their functions and arise from the task of maintaining an apartment building and all related property in perfect order.

Excess of authority by manager

If the chairman of the homeowners association does not conscientiously fulfill his duties and exceeds his authority, thereby infringing on the residents, measures should be taken immediately.

Dissatisfaction can be expressed either by a single applicant or by a group of persons. However, it is worth understanding that a collective complaint is more likely to be considered. This paper must be taken to the court, the initiative group of the HOA board, or the housing inspection. The chairman of the board is replaced by recusal or by re-election to the OSS.

At the same time, the statute must mention a point regarding what to do if the head of the house fails to fulfill his powers, the rules for terminating a contract or withholding wages.

Dismissal from a position is justified if:

• making serious decisions without the knowledge and consent of residents;
• failure to comply with prescribed standards;
• theft of property intended for various purposes at home.

The concept of HOA and its functions

As a result of the privatization of housing, attitudes towards the maintenance of houses have changed. If earlier this issue was largely dealt with by the state, today the apartment owners themselves are responsible for everything.

For large apartment buildings there are two possible courses of action:

• conclude an agreement with a management company (MC);
• create a homeowners association (HOA).

According to the legislation of the Russian Federation, the HOA is a non-profit organization. It consists of the owners of apartments in the building, who have united to jointly manage apartment buildings and operate the premises.

The HOA can function in two ways: control the activities or independently ensure the maintenance and repair of the house.

Thanks to the existence of such an organization it is possible to:

• prevent money from being spent for other purposes;
• increase the level of safety in the home;
• raise additional funds for landscaping and so on.

Find out more about what a homeowners association is.

What requirements must a person occupying this position meet?

Who can become the chairman of the HOA? Like any other position, the Chairman must meet the following requirements. In each partnership they are individual.

But there are basic requirements:

• in some cases, a person with a higher economic or technical education is required;
• There is often an age requirement; the candidate must be over thirty years old;
• not previously subject to trial;
• have enough time to complete the work.

Responsibility, competence and clarity are also necessary qualities of a candidate for the position.

Knowledge of the technical structure of the building is important.

A prerequisite is knowledge of all regulatory and legislative documentation related to HOAs.

Change of management of the partnership

An HOA cannot exist without a chairman. Therefore, there is a change in leadership.

It goes like this:

• a member of the board makes a proposal regarding the change of chairman;
• a meeting is called;
• voting takes place.

Re-election of management requires this decision to be made by a majority vote. Based on the results of the meeting, a decision is made in writing. No change is made if a minority votes.

Thus, if a person does not fulfill his duties, a complaint is filed against the chairman of the HOA. The document is submitted to the judicial authority or prosecutor's office. It depends on what kind of violation the citizen committed.

Degree of responsibility of the person holding the position

If the chairman of the HOA breaks the laws and does not work in the interests of the residents, he will have to bear responsibility for the damage caused

The legislation, namely the Housing Code, does not establish the liability of the partnership or property owners for failure to fulfill certain obligations.

But since such an organization is a legal entity, all rules governing liability are included in other codes.

The person in the chairman's position is also the governing body of the HOA. He acts on behalf of the legal entity and makes many decisions for the HOA.

Therefore, a person in this position is subject to the provisions of Art. 53.1 of the Civil Code of the Russian Federation, which states liability for damage caused to the HOA. Types of liability are reflected in the Charter.

Personal liability of the chairman may be provided for the following types of violations:

• concealment or distortion of information about the work of the partnership;
• for damage that occurred to the owners after taking irrational, unjustified actions.

Criminal liability may apply to individuals rather than legal entities. This could be the chairman or another board member. For example, when they commit crimes, such as embezzlement or fraud.

There are often chairmen who abuse their powers. This also has its own article in the Criminal Code.

A person in this position must have business qualities. They allow you to interact correctly with the authorities. And also with all property owners.

Each person holding the post of chairman must know all the necessary laws and study their changes. It will only be better if he has knowledge of economics, accounting and statistics.

From all of the above, it becomes clear that the responsibilities of the chairman of the HOA are different and there are a lot of them. In addition to all business and educational qualities, such a person must have excellent stress resistance.

The attitude of authorities and owners may not always be good. Negativity often prevails in the activities of organizations. The responsibilities of the chairman of the HOA in apartment buildings are multifaceted.

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Discussion: 4 comments

1. Yana says:
   07/25/2017 at 20:00

   HOAs in the periphery have not yet become widespread. People, out of habit, rely on housing and communal services. Although, you won’t get anything from him in a timely manner. It’s rare that anyone will agree to take care of the affairs of a house or several houses simply because of the human factor, when many residents believe that they are “obliged” without bothering to familiarize themselves with the new legislation.

   Answer

2. Ivan says:

   08/20/2017 at 02:33

   After reading the material, I came to the conclusion that the chairman of the board of an HOA must be truly a generalist: technically literate, legally savvy, and a person who knows his way around accounting. If we assume that this position is not rewarding, then it is unlikely that there will be hunters with the required set of knowledge and qualities to take it.

   Answer

3. Dmitry says:

   01/28/2019 at 09:25

   Yes, a good house manager is worth his weight in gold